Dogecoin seems to have become a bullish momentum, at least in the short term, prompting analysts to predict a bullish short-term outlook. Notably, DOGE increased by 7% in the last 24 hours and is still up 14% in the last 3 days.
Current price action shows that the cryptocurrency is breaking out above a resistance level of around $0.16. A crypto analyst known by the pseudonym World Of Charts believes that the potential for this breakout is very strong and DOGE is poised for an increase to a price target between $0.27 and $0.30, which represents a 100% increase on the upper end.
Major Dogecoin Metric Explodes
Doge is starting to become bullish in a number of metrics, which has increased investor interest. One such metric is DOGE open interest on crypto exchanges. At the time of writing, Dogecoin’s open interest increased by over 12.47% in the last 24 hours to $883.89 million in the last 24 hours, according to Coinglass data .
Other measures, such as increase in the volume of derivative products and a 14.4% increase in trading volume over the past 24 hours, also indicate increased activity for DOGE, which in turn could lead to a significant price rise.
According to a 12 hour time frame Dogecoin graphic shared on World Of Charts X social media platform, DOGE is on the verge of breaking out of a descending triangle. This chart shows that DOGE is following an interesting price action formation consisting of lower highs and even lower lows since early April.
This descending triangle shape is a particularly strong bullish indicator for Dogecoin analysts, especially as it has started to form. after a strong bullish trend in DOGE in February and March. When this trend occurs as part of an established uptrend like this, it usually indicates corrections before the trend continues.
The analyst noted that DOGE is “on the verge of another breakout.” According to his analysis, a successful breakout would push DOGE on the continuation of the uptrend and towards $0.27 to $0.30 for the first time since October 2021.
Despite a 182% price increase in February and March, DOGE has yet to reach $0.27 this year. The cryptocurrency peaked at $0.22 before falling and correct to $0.13, a decrease of 40%.
At the time of writing, DOGE is trading at $0.156 and may continue to rise for the rest of the month. The first step before reaching $0.3 is to break through resistance around $0.167. If DOGE can rise above $0.17 and the bulls hold this price level, it could continue to rise to $0.22 and beyond.
Chart from Tradingview.com
